Eastern Stalemate Continues

January 19, 1986|By Tom Stieghorst, Business Writer

Eastern Airlines and Transport Workers Union Local 553 have made no progress since Friday in last-minute negotiations toward a new contract for 7,200 flight attendants, a federal labor official said Saturday.

``I`m afraid we have not progressed to a place where we are in any different position than we were yesterday,`` said National Mediation Board Chairman Walter Wallace, who is supervising the talks at a Miami hotel.

``Both sides are working hard and are very anxious to reach an agreement,`` Wallace said. The two sides are expected to continue negotiating today.

If no settlement is reached by midnight today, the attendants will be free to launch a strike. But union president Robert Callahan has pledged to avoid a strike until Feb. 28.

By that date, Eastern has agreed with lenders to have new labor concessions from all three of its unions to keep from falling into technical default on its $2.4 billion debt.

Wallace said Eastern`s lenders believe the company to be in a ``perilous`` situation.

Eastern has asked attendants for pay cuts of 9 to 16 percent, and new work rules that would make the Miami-based airline more competitive with low-cost carriers. Under federal labor law, Eastern has no obligation to bargain after today, and will be free to impose its conditions on the union Monday if no settlement is reached.